Are you an international college applicant deciding between the benefits of living and studying in Toronto vs Vancouver for students? Or are you moving to Canada with your family and wondering about house rental insurance in Canada? No matter why you’ve decided to make Canada home, Canadian renter’s insurance can financially protect all newcomers; read on to find out why.
Frequently Asked Questions about Canadian renter’s insurance
Is Canadian renter’s insurance for me or my landlord?
Canadian tenant insurance (also known as renter’s insurance) is for you and your family. As much as everyone wants a great relationship with their landlord, landlords can’t always financially protect you from everything that could go wrong in your home. Your landlord should have an insurance policy covering your building. Still, that policy doesn’t cover all of your belongings, which is why contents insurance is an important part of tenant insurance in Canada.
How does Canadian renter’s insurance protect me?
Renter’s insurance keeps you from paying large amounts if something goes wrong in your home, belongings are damaged, or people suffer injuries. Most people don’t have hundreds or thousands of dollars to pay for those losses without going into debt. So insurance helps by charging you a monthly or yearly premium. Don’t worry; your premium is usually a fraction of what you would pay if you needed to make a claim.
How much does renters insurance in Canada cost?
With renter’s insurance from aha, you can pay as little as $15 a month for your renter’s insurance protection. The monthly price of your renter’s insurance in Canada depends on:
- The amount of coverage you need to protect your belongings.
- The types of events your insurer covers, which may include theft, fire, flooding and liability claims, but you should always check your policy for details.
- The maximum amount your insurer will pay you if you make a claim.
- Your deductible, or the amount you will pay before your Canada rental insurance gives you money to cover damages.
Below, we’ll discuss how these factors contribute to the cost of renters insurance in Canada in detail.
How do Canadian renter’s insurance deductibles work?
Every insurance policy has a set deductible. A deductible is an amount you pay out of pocket to repair or replace your stuff if you need your insurance company to pay for a claim.
Suppose you lose $2,000 worth of electronics after a robbery, and your insurance deductible is $500. In that case, your insurance company will pay you a maximum of $1,500 to replace your belongings.
The higher your deductible, the lower your insurance premiums will be. Still, you’ll receive less money if you make a claim – this is why you must ensure you can afford to pay your deductible. For example, suppose you don’t think you could afford to pay $500 towards replacing stolen or damaged items. In that case, you could adjust your policy to have a lower deductible.
When would I use my Canadian renter’s insurance?
Renters insurance can help protect your belongings from a range of circumstances, including:
• Fire
• Theft and vandalism
• Severe weather like wind or hail storms
• Water damage
Always check with your insurer to find out which “perils” your policy’s coverage includes.
What’s the difference between landlord and renters insurance?
While your renter’s insurance covers the belongings in your living space, your landlord should also have an insurance policy covering the structure of the building in which you live. Check with your landlord to learn the details of their insurance coverage.
Not all landlord’s insurance policies include flood insurance, which may be of particular concern if you live in a basement apartment or a low-lying area. In addition, not all tenant insurance policies cover water damage from floods. So it’s essential to check if your policy would protect your belongings in the event of flooding from different sources like a sewer backup, heavy rainstorm or overflowing body of water.
Learn more about the rights of tenants in Canada.
How does legal liability insurance protect me?
As a renter, you should consider liability insurance to cover legal fees if someone injures themselves while visiting your home. For example, say a guest slips on your freshly cleaned floor. If they decided to sue you for an injury, your Canadian renters’ insurance could help pay legal fees and settlements.
Your tenant insurance can also help if an accident in your unit impacts another part of your building. For example, suppose your bathtub, sink, or toilet overflows and causes water damage in the apartment below yours. In that case, your liability insurance can step in to pay for damages.
What if I need to move out?
In many cases, your policy’s home contents insurance travels with your belongings as you move them to your new home. However, it’s critical to check with your insurer to tell them the details of your move. Not informing your insurer of an address change could affect your ability to make a successful insurance claim.
There’s also the possibility that you have to move out because your home needs repairs and is unfit to live in during the repair process. Your tenant insurance policy could help you pay for temporary accommodations. Every renter’s policy is unique, so check with your insurance company to see if your policy includes temporary housing coverage for your family.
How do I determine what Canadian renter’s insurance limits are right for me?
Typically renters base their insurance limits on the value of their belongings. So, if you own expensive items, you’ll need higher coverage limits to ensure you can afford to replace them if they were damaged, destroyed or stolen.
Take an inventory of your family’s belongings. How much would it cost to replace them if everything in your home was damaged? If that amount is $20,000, you probably want a policy that could pay you a maximum of $20,000 if your home’s contents were lost in an event like a fire.
How do I insure my most valuable belongings with my Canadian renter’s insurance?
Do you have any precious belongings like fine art, heirloom jewellery, high-end tech, or sports equipment? You can “schedule” your most valuable belongings and add them to your insurance policy. Scheduling property means having special insurance for a specific item that costs much more than your other possessions.
For example, a couple may only need $10,000 worth of insurance to cover their small apartment’s contents. Still, suppose they have an engagement ring worth $3,000. In that case, it’s wise to get special coverage for this item since its value equals almost 30% of the rest of their belongings combined.
How do I get the best tenant insurance in Canada?
Getting the best Canadian tenant insurance starts with getting a quote from an insurance company or broker. If you buy insurance from an agent representing one company, you’ll need multiple quotes to compare policy prices. Insurance brokers represent numerous insurance companies, so they can evaluate the policies offered by the insurers they work with for you.
Aha insurance is an insurance broker that can help you find the best tenant insurance options from our trusted Canadian insurance partners for your unique living situation. You can get your quote in minutes and buy tenant insurance online for Canada here.
Did you know that only about half of Canadian renters have tenant insurance? So if you’re new to Canada and thinking about insuring your belongings, you’re already ahead in taking steps to protect your new home!
